TikTok’s Irish subsidiary has reported a sharp return to profit in 2024, despite facing mounting regulatory pressures and workforce reductions.
Newly filed accounts for TikTok Technology, the Dublin-based arm of the Chinese-owned social media platform, show pre-tax profits of $173.58 million for last year, a major turnaround from a $1 billion pre-tax loss in 2023. That loss stemmed largely from a $1 billion provision set aside for potential fines linked to ongoing investigations.
The company’s revenues rose by 32% year-on-year, climbing from $654 million to $862 million, with directors crediting higher demand for support services provided across TikTok’s European operations. Operating profits also reached $173.58 million, though interest payments of $27 million reduced pre-tax profits to $146.52 million. After a $13.16 million corporation tax charge, the unit recorded a post-tax profit of $133.35 million.
The figures come against a backdrop of rising scrutiny from regulators. In May, the Data Protection Commission (DPC) fined TikTok Technology a record €530 million for transferring European users’ data to China in violation of EU privacy laws. TikTok has since appealed the penalty, describing it as “penal,” and the High Court granted permission in July to proceed with the case.
The company has also been restructuring its Irish operations. In March, TikTok announced plans to cut up to 300 jobs from its Dublin workforce. Average employee numbers last year dropped by 212 to 2,708, split between operations and administration (1,973) and sales and marketing (735). Despite the reduction, staff costs rose from $229.47 million to $245.77 million, reflecting higher salaries, pensions, and share-based payments.
Directors’ pay also increased significantly, rising from $608,000 to $899,000. This included $848,000 in emoluments and $51,000 in pension contributions.
TikTok’s Irish operations play a central role in the company’s European strategy, covering content moderation, data control, sales, marketing, and support functions. Directors said the business “continued to grow throughout 2024,” noting rising data centre expenses and recurring operating costs. They added that the launch of TikTok Shop in Ireland and Spain last December is expected to drive further European expansion.
The company’s office footprint has also shifted. In September 2024, TikTok abandoned plans to move staff into the Tropical Fruit Warehouse on Dublin’s south docklands, instead consolidating employees at its European headquarters in the Sorting Office on Cardiff Lane.
The accounts, signed on August 19 by directors Elaine McGovern and Adam Michael Presser, underline both TikTok’s resilience in its Irish base and the challenges it faces as regulators tighten scrutiny over data handling and compliance.
